Arbitration

Must an arbitrator in Israel disclose past connections with a party?

Yes. The Arbitration Law 5728-1968 contains no separate disclosure section, but Israeli courts treat disclosure as a condition of appointment and apply Section 11 of that law to remove an arbitrator who is no longer worthy of the parties' trust. The duty is continuing rather than a single declaration at the outset. Arbitrations governed by the International Commercial Arbitration Law 5784-2024 carry an express obligation to disclose any circumstance likely to raise justifiable doubts about impartiality or independence. Non-disclosure is generally a stronger ground for challenge than the underlying connection would have been on its own.

Israel's commercial legal market is small, and an experienced arbitrator will often have appeared against, alongside or before the lawyers now standing in front of them. Courts have not treated every past contact as disqualifying, and they say so openly. What they penalise is silence. A connection disclosed at the outset and left unchallenged is waived, while the same connection surfacing mid-hearing usually ends the appointment. Israeli practitioners use the IBA Guidelines on Conflicts of Interest in International Arbitration as the reference point for what belongs on the list, covering repeat appointments by the same party or law firm, current and recent client relationships, and any financial interest in the outcome.

For a foreign party the real protection is procedural rather than legal. Ask each candidate for a signed written disclosure statement before confirming the appointment, covering appointments, client work and co-counsel relationships over the previous three years, and keep it on file. Raise any objection immediately, because delay reads as acceptance and an Israeli court will not entertain a challenge that was held back as insurance against losing. Where a connection emerges only after the award, the route is an application to set aside under Section 24 of the Arbitration Law, and that window is short. Our guide to appointing and challenging an arbitrator in Israel sets out the procedure step by step.

⚖ In Practice
  • Governing law: Section 11, Arbitration Law 5728-1968; the disclosure provisions of the International Commercial Arbitration Law 5784-2024 for qualifying international disputes
  • Competent authority: District Court (Beit Mishpat Mechozi) with jurisdiction over the arbitration
  • What must be disclosed: prior and current professional or financial ties to a party, its lawyers or a witness, plus repeat appointments by the same party or firm
  • Reference standard: the IBA Guidelines on Conflicts of Interest in International Arbitration, cited persuasively rather than as binding law
  • Timing: object as soon as the circumstance is known, because a party that keeps participating with knowledge is treated as having waived the point
  • Post-award route: an application to set aside under Section 24 must be filed within 45 days of receiving the award

From the full guide: Appointing and Challenging an Arbitrator in Israel


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